Roblox (NYSE:RBLX) Downgraded by Citigroup to “Neutral”

Roblox (NYSE:RBLX) was downgraded by Citigroup from a “buy” rating to a “neutral” rating in a research report issued on Friday, Benzinga reports. They currently have a $55.00 price target on the stock. Citigroup‘s target price would suggest a potential upside of 9.35% from the stock’s previous close.

RBLX has been the topic of a number of other reports. Wells Fargo & Company downgraded Roblox from an “overweight” rating to a “cautious” rating in a research report on Monday, October 12th. DA Davidson cut their target price on Roblox from $50.00 to $48.00 and set a “neutral” rating on the stock in a research report on Monday, November 2nd. Wall Street Zen upgraded Roblox from a “sell” rating to a “hold” rating in a report on Sunday, October 11th. Morgan Stanley lowered their price target on Roblox from $62.00 to $55.00 and set an “overweight” rating for the company in a research report on Friday, July 31st. Finally, Barclays dropped their price objective on shares of Roblox from $60.00 to $47.00 and set an “equal weight” rating for the company in a research note on Monday, August 3rd. Two investment analysts have rated the stock with a Strong Buy rating, ten have assigned a Buy rating, thirteen have given a Hold rating and five have given a Sell rating to the company’s stock. According to MarketBeat, Roblox presently has an average rating of “Hold” and a consensus price target of $53.04.

Roblox Stock Performance

Roblox stock opened at $50.30 on Friday. The company’s 50-day moving average price is $48.10 and its 200-day moving average price is $51.31. Roblox has a twelve month low of $33.88 and a twelve month high of $103.78. The company has a quick ratio of 0.80, a current ratio of 0.80 and a debt-to-equity ratio of 7.82. The company has a market cap of $33.77 billion, a PE ratio of -36.65 and a beta of 1.45.

Roblox (NYSE:RBLX) last announced its quarterly earnings results on Thursday, October 29th. The company reported ($0.32) EPS for the quarter, beating analysts’ consensus estimates of ($0.43) by $0.11. The firm had revenue of $1.57 billion during the quarter, compared to the consensus estimate of $1.63 billion. Roblox had a negative net margin of 16.48% and a negative return on equity of 417.56%. The firm’s revenue for the quarter was up 15.6% compared to the same quarter last year. During the same quarter last year, the firm earned ($0.37) EPS. On average, equities research analysts forecast that Roblox will post -1.36 EPS for the current fiscal year.

Insider Activity

In related news, CFO Naveen K. Chopra sold 17,509 shares of the firm’s stock in a transaction that occurred on Thursday, August 20th. The stock was sold at an average price of $37.96, for a total transaction of $664,641.64. Following the completion of the sale, the chief financial officer directly owned 363,249 shares of the company’s stock, valued at approximately $13,788,932.04. This trade represents a 4.60% decrease in their position. The sale was disclosed in a legal filing with the Securities & Exchange Commission, which is accessible through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, Director Gregory Baszucki sold 16,666 shares of the business’s stock in a transaction on Thursday, October 1st. The shares were sold at an average price of $42.87, for a total value of $714,471.42. Following the transaction, the director owned 1,252,836 shares of the company’s stock, valued at approximately $53,709,079.32. The trade was a 1.31% decrease in their position. The SEC filing for this sale provides additional information. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders have sold 174,795 shares of company stock valued at $6,921,031. 10.05% of the stock is currently owned by corporate insiders.

Institutional Trading of Roblox

Several institutional investors and hedge funds have recently made changes to their positions in the business. Bleakley Financial Group LLC boosted its holdings in Roblox by 107.0% in the third quarter. Bleakley Financial Group LLC now owns 64,514 shares of the company’s stock worth $2,733,000 after acquiring an additional 33,354 shares in the last quarter. Essex Financial Services Inc. acquired a new position in shares of Roblox during the third quarter valued at about $216,000. Jackson Thornton Wealth Management LLC increased its holdings in shares of Roblox by 38.9% during the third quarter. Jackson Thornton Wealth Management LLC now owns 11,065 shares of the company’s stock valued at $469,000 after acquiring an additional 3,100 shares in the last quarter. Advisors Asset Management Inc. acquired a new position in shares of Roblox during the third quarter valued at about $360,000. Finally, Private Wealth Asset Management LLC purchased a new position in shares of Roblox in the 3rd quarter valued at approximately $811,000. 94.46% of the stock is currently owned by institutional investors.

About Roblox

Roblox Corporation operates an online platform where users can create, share and play interactive 3D experiences. The company provides Roblox Studio, a set of tools that creators use to build games and other virtual spaces, as well as services for users to connect and communicate within those experiences. Roblox supports a creator economy through Robux, its virtual currency, which users can use for digital items and purchases in experiences. Eligible creators can earn revenue from their work through purchases and other platform programs.